Ind­lu­place en­ters KZN mar­ket in R43m deal

The Star Early Edition - - COMPANIES - Given Ma­jola

IND­LU­PLACE Prop­er­ties, the listed fo­cused res­i­den­tial prop­erty com­pany, has en­tered the KwaZulu-Na­tal mar­ket with the ac­qui­si­tion of two buildings for R43 mil­lion.

Carel de Wit, the chief ex­ec­u­tive of the com­pany, said the two buildings were at Dur­ban’s South Beach and Greyville.

“The ac­qui­si­tion in KZN means that we will have prop­er­ties in four prov­inces. This is part of our strat­egy to build a di­verse res­i­den­tial port­fo­lio with a na­tional foot­print.

“We have looked at some prop­er­ties in KZN be­fore, but were un­able to con­clude transactions that sat­is­fied all our cri­te­ria. We have seen that the rental mar­ket in the larger cen­tral re­gion is strong and of­fers good long-term op­por­tu­ni­ties,” he said.

De Wit said they in­tended to con­tinue their ag­gres­sive growth of the last few years into the fu­ture in South Africa with KZN be­ing part of their plans.

Ind­lu­place last week con­cluded an agree­ment with well-known pri­vate eq­uity and in­vest­ment con­sor­tium Buf­fet Group, to ac­quired 2 914 res­i­den­tial units with 3 400m² of as­so­ci­ated retail space for about R1.4 bil­lion. The port­fo­lio com­prises 51 prop­er­ties-mostly spread across Gaut­eng.

The ma­jor­ity of the prop­er­ties com­prise sub­ur­ban blocks and town house com­plexes. About half of the port­fo­lio to be ac­quired con­sists of two-bed­roomed apart­ments with the bal­ance spread be­tween one­and three-bed­roomed units, bach­e­lor units as well as rooms.

The av­er­age rental across the res­i­den­tial units is about R4 300 a month.

“The Buf­fet Group has sub­stan­tial in­vest­ments in the prop­erty sec­tor across the coun­try and we be­lieve this trans­ac­tion pro­vides a good plat­form for fur­ther transactions with the group,” De Wit said.

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